Citi Lifts JDS Uniphase (JDSU) to Buy: Says Ignore Finisar (FNSR) Concerns (CIEN)
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Price: $10.87 --0%
Rating Summary:
10 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
10 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Citigroup analyst Kevin Dennean raised his rating on JSD Uniphase Corp. (NASDAQ: JDSU) on Monday to Buy from Hold, only a month after cutting the stock after an 83 percent run-up in the shares.
The analyst's price target was down slightly from $27.50 to $27 after he cut his estimates for JDSU, but is encouraging investors to look past the Finisar Corp. (NASDAQ: FNSR) worries.
“Our checks and conversations paint a different picture,” writes Dennean. “Yes, it’s still (and always has been, always will be) tough out there in optical land, but the industry is poised for healthy growth in 2011 and beyond.”
The analyst now sees JDSU earnings hitting $1.00 per share in 2011 on revenue of $1.827 billion.
"Two things are clear from our conversations with a wide variety of companies at the OFC show: 1) there are some near-term supply chain disruptions that will weigh on optical component revenues in the first half of the year; 2) 2011 will still be a growth year for the optical sector, although we increasingly believe it will be led by systems vendors rather than component companies."
Dennean said that Ciena Corp. (NASDAQ: CIEN) is his favorite in the optical sector. He maintains a $34.50 price target on Ciena.
The analyst's price target was down slightly from $27.50 to $27 after he cut his estimates for JDSU, but is encouraging investors to look past the Finisar Corp. (NASDAQ: FNSR) worries.
“Our checks and conversations paint a different picture,” writes Dennean. “Yes, it’s still (and always has been, always will be) tough out there in optical land, but the industry is poised for healthy growth in 2011 and beyond.”
The analyst now sees JDSU earnings hitting $1.00 per share in 2011 on revenue of $1.827 billion.
"Two things are clear from our conversations with a wide variety of companies at the OFC show: 1) there are some near-term supply chain disruptions that will weigh on optical component revenues in the first half of the year; 2) 2011 will still be a growth year for the optical sector, although we increasingly believe it will be led by systems vendors rather than component companies."
Dennean said that Ciena Corp. (NASDAQ: CIEN) is his favorite in the optical sector. He maintains a $34.50 price target on Ciena.
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